FHE Lesson--Managing Family Resources

Managing Family Resources
President N. Eldon Tanner
First Counselor in the First Presidency
What I would like to share with you today are my observations about the constant and fundamental principles which, if followed, will bring financial security and peace of mind under any economic circumstances.

“Seek Ye First the Kingdom of God”
In the Book of Mormon, the prophet Jacob gives us some important counsel on this matter:
“But before ye seek for riches, seek ye for the kingdom of God.
“And after ye have obtained a hope in Christ ye shall obtain riches, if ye seek them; and ye will seek them for the intent to do good—to clothe the naked, and to feed the hungry, and to liberate the captive, and administer relief to the sick and the afflicted” (Jacob 2:18–19; italics added).
The foundation and perspective then are these: We must first seek the kingdom, work and plan and spend wisely, plan for the future, and use what wealth we are blessed with to help build up that kingdom. When guided by this eternal perspective and by building on this firm foundation, we can pursue with confidence our daily tasks and our life’s work, which must be carefully planned and diligently pursued.
It is within this framework that I would like to explain five principles of economic constancy.

Pay an Honest Tithe
Constancy #1: Pay an honest tithing. I often wonder if we realize that paying our tithing does not represent giving gifts to the Lord and the Church. Paying tithing is discharging a debt to the Lord. The Lord is the source of all our blessings, including life itself.
The payment of tithing is a commandment, a commandment with a promise. If we obey this commandment, we are promised that we will “prosper in the land.” This prosperity consists of more than material goods—it may include enjoying good health and vigor of mind. It includes family solidarity and spiritual increase. I hope those of you not presently paying your full tithe will seek the faith and strength to do so. As you discharge this obligation to your Maker, you will find great, great happiness, the like of which is known only by those who are faithful to this commandment.

Live Frugally
Constancy #2: Live on less than you earn. I have discovered that there is no way that you can ever earn more than you can spend. I am convinced that it is not the amount of money an individual earns that brings peace of mind as much as it is having control of his money. Money can be an obedient servant but a harsh taskmaster. Those who structure their standard of living to allow a little surplus, control their circumstances. Those who spend a little more than they earn are controlled by their circumstances. They are in bondage. President Heber J. Grant once said: “If there is any one thing that will bring peace and contentment into the human heart, and into the family, it is to live within our means. And if there is any one thing that is grinding and discouraging and disheartening, it is to have debts and obligations that one cannot meet” (Gospel Standards, comp. G. Homer Durham [1941], 111).
The key to spending less than we earn is simple—it is called discipline. Whether early in life or late, we must all eventually learn to discipline ourselves, our appetites, and our economic desires. How blessed is he who learns to spend less than he earns and puts something away for a rainy day.

Distinguish Needs and Wants
Constancy #3: Learn to distinguish between needs and wants. Consumer appetites are man-made. Our competitive free enterprise system produces unlimited goods and services to stimulate our desire to want more convenience and luxuries. I do not criticize the system or the availability of these goods or services. I am only concerned about our people using sound judgment in their purchases. We must learn that sacrifice is a vital part of our eternal discipline.
In this and many other countries, many parents and children born since World War II have known only prosperous conditions. Many have been conditioned to instant gratification. There have been ample job opportunities for all who are capable of working. Yesterday’s luxuries for most are considered today’s necessities.
Overindulgence and poor money management place a heavy strain on marriage relationships. Most marital problems, it seems, originate from economic roots—either insufficient income to sustain the family or mismanagement of the income as earned.
I realize that young families find it necessary at times to purchase on credit. But we caution you not to buy more than is truly necessary and to pay off your debts as quickly as possible. When money is tight, avoid the extra burden of additional interest charges.

Budget Wisely
Constancy #4: Develop and live within a budget.
It has been my observation in interviewing many people through the years that far too many people do not have a workable budget and have not disciplined themselves to abide by its provisions. Many people think a budget robs them of their freedom. On the contrary, successful people have learned that a budget makes real economic freedom possible.
Budgeting and financial management need not be overly complicated or time-consuming.
Wise financial counselors teach that there are four different elements to any good budget. Provision should be made first for basic operating needs such as food, clothing, etc.; second, for home equity; third, for emergency needs such as savings, health insurance, and life insurance; and, fourth, for wise investment and a storage program for the future.

Be Honest
Constancy #5: Be honest in all your financial affairs. The ideal of integrity will never go out of style. It applies to all we do. As leaders and members of the Church, we should be the epitome of integrity.

Brothers and sisters, through these five principles, I have tried to sketch what might be characterized as the true pattern of financial and resource management.
I hope that each of us may benefit from their application. I bear my witness that they are true and that this Church and the work we are engaged in are true.

From an address by President Tanner in the general welfare session of the October 1979 general conference of the Church (see Conference Report, Oct. 1979, 117–21; or Ensign, Nov. 1979, 80–82).